Following the implementation of the 16 percent value-added tax (VAT) on digital transactions, LinkedIn has increased membership fees and rates that users pay to access premium services by up to Sh 1,400 per account. The subscription fees for the American-owned software corporation increased on May 11, laying the scene for greater operational costs for enterprises. Kenya’s finance act. Kenya’s Finance Act of 2019 imposed a 16 percent VAT on digital transactions for international corporations, but offered them a six-month grace period to comply. “We want to provide you with an important tax update related to Kenya tax that will impact your LinkedIn purchase(s). Kenya has introduced tax at 16 percent on e-Services. In order to comply with these laws and regulations, this tax will be added to your current LinkedIn purchase starting on May 11, 2022,” LinkedIn said in a communique to its members. “If you add a valid business PIN ID to your profile, LinkedIn will not charge you tax. However, please note, if a valid Kenya tax number has been provided, this will be accepted by LinkedIn as notification of your responsibility to account for VAT under the reverse charge mechanism.” LinkedIn provides four options with prices ranging from Sh3,200 to Sh10,719 per account: career, business, sales navigator core, and recruiter lite.
